Officials consider proposal to target Chicago-area retirees

Monday

Mar 25, 2013 at 6:00 AM

There’s little argument over what the lakes, streams and 150 miles of rivers add to the value of life in St. Joseph County.Differences of opinions arise, however, when the question of whether county leaders should spend what could be millions of dollars on marketing those quality-of-life features to prospective retirees in Chicago and its suburban market.

Jef Rietsma

There’s little argument over what the lakes, streams and 150 miles of rivers add to the value of life in St. Joseph County.Differences of opinions arise, however, when the question of whether county leaders should spend what could be millions of dollars on marketing those quality-of-life features to prospective retirees in Chicago and its suburban market.The proposal to promote St. Joseph County in a market that is a relatively short drive away has drawn its share of critics who question whether the concept should be such a high priority. The potential amount of money at stake could be spent in a manner that better benefits the county’s current residents, they contend. To be fair, there are an ample number of backers. The county in the past month has fielded letters of support from Island Hills Golf Club and its condominium association; the Sturgis Improvement Association’s John Wiedlea; and White Pigeon resident and Sturgis business owner Don Fox — a one-time Chicago resident who found the area too good to leave.The next step regarding the proposal won’t be taken for at least another month, when county officials — including incoming county administrator Patrick Yoder — plan to meet with representatives from marketing firm 2 Fish Co. and continue exploring the idea.The meeting was slated to take place today, but has been postponed until after Yoder comes aboard next week.Commissioner Don Eaton, who has conducted extensive research into the matter, said several factors must be taken into consideration before passing judgment.During a presentation on the issue last month at the St. Joseph County Intermediate School District, Eaton presented a variety of numbers to help put into perspective the significance of the proposal.In January, the county’s unemployment rate was about 9.4 percent. For the nation, he said, it was 7.8 or 7.9 percent.Meanwhile, the county’s annual household income 12 to 15 years ago was between $46,000 and $47,000. Today, it is $39,000, $40,000, Eaton said.Twelve to 15 years ago, the county’s poverty level was 9.5 to 10 percent; today, it’s over 20 percent, he said. Twenty-one percent for individuals, 19 percent for married couples.“And every 18 to 24 months, we’re gaining 1 percent in poverty,” Eaton said. “We’re one of the top 50 counties this side of the Mississippi River that lost the most jobs per capita, which will help explain the poverty level.”In the county’s two largest school districts, the number of students in kindergarten through 12th grade who qualify for free and reduced lunches is 70 percent in one district and 72 percent in the other, Eaton said. The state average is 45.5 percent, he noted. Also, Eaton said 40 percent of all living units in Three Rivers and surrounding area are rentals; in Sturgis it’s 42 percent. In the state, it’s barely 21 percent.“I dropped my jaw when I heard a high-positioned community leader say, ‘Well look at that county over there, they’re doing worse,’” Eaton said. “Really? That fixes everything, as long as someone is doing worse?”Eaton cited studies by the USDA, Freddie Mac, Fannie May, National Realtors Association and AARP, and all indicated in this decade and next, Baby Boomers will pass through stages when moves to non-metro counties will increase. Areas with scenic amenities will be highly sought.“High second-income concentrations looking for lower-housing costs? Amenities? Who has the most lakes, rivers and streams? Who has the cheapest housing right now? Who has the population of Chicago within two hours? Baby Boomers have already demonstrated more than an affinity to moving to rural and small-town destinations than their younger and older cohorts,” Eaton said. “The goal is to target 55 to 60 year olds in greater area of Chicago.”The county’s relationship with 2 Fish was formed through its relationship with Southwest Michigan First. Various forms of media would be used to get the word out about St. Joseph County.Fabius Township resident Rebecca Shank has expressed her reservations about the plan. She said the idea is shortsighted in that considering the age of the people being targeted, a glut of houses could be on the market in 15 to 20 yearsShank addressed commissioners earlier this month and indicated that with new job openings announced recently, a slightly improved economy and the collaborative efforts between St. Joseph County’s Economic Development Corporation and Southwest Michigan First, the focus should be on luring educated, younger people and families to supply an employee base and progress for the area going forward.“The many supportive calls and letters I’ve received over the past two weeks have recalled some of the very points expressed in 2011, during the conversations over the so-called Trine Proposal,” Shank said. “The bottom line? We must invest in infrastructure necessary to attract business and industry key to our very economic survival.”As the aborted partnership with Trine University was slated to be funded with $6.9 million from the county’s delinquent-tax-revenue fund, so would the proposed marketing campaign. The fund is comprised primarily of money paid to the county via fines and fees from residents and businesses late in paying their taxes. The fund — which has been tapped only once in its history, when the county spent $3.8 million to refurbish the courthouse in the mid 1990s — has a balance of about $14 million but there are stipulations on how the money can be spent.Eaton said the marketing campaign to attract 1,000 Chicago-area retirees would be a good investment.“What corporation, what small business, what governmental entity can create a positive atmosphere, profitability, opportunity by doing nothing but cutting and budgeting? Somewhere, it has to have promotion and incentives,” Eaton said. “I give us an A-plus on budgeting and cutting. As far as promotion, telling our story, who we are — 62,000 strong —you probably don’t want to see the grade on it.”Where Florida used to be an ideal retirement location, preferences are changing, Eaton said. People in the Chicago market come to St. Joseph County and like the benefit of clean air, no traffic congestion and natural amenities. A drive less than three hours from family is another plus, Eaton said. Retirees, Eaton said, are now poised to significantly increase the population of 55 to 75 year olds in rural and small-town America throughout 2020 with major socio-economic implications for the chosen destination.“The rate of growth of this age group to the non-metro areas will likely triple to 31 percent during the current decade,” Eaton said. “What that says to me —we’ve got a one-time shot. It’s not going to be a dress rehearsal. We have a year to 18 months to prepare ourselves, then a seven- to eight-year opportunity, then it will pass us by never to see again. Bottom line is, it’s about our tax base.”He said the Chicago market has 135,000 households and 360,000 people.“I just want a thousand. If our ancillary income in our county is $39,000-$40,000 and the income that comes in from them is $80,000 to $110,000 on average, that’s more than double our average income,” he said.Eaton said he understands not every township will benefit from the potential influx.“Will some townships win out more than others? Well, certainly. But we’re all here, 62,000 strong. If there is one half of the county that more of a winner than the other, we all won — road commission, sheriff’s department and other services we can keep. What’s good for Three Rivers is good for the county and what’s good for the county is good for the state,” Eaton said.